The Central Bank of Nigeria (CBN) successfully has raised N2.93 trillion from recent auctions of Treasury Bills (T-Bills) and Open Market Operation (OMO) bills, buoyed by strong investor demand across both instruments.
T-Bills are short-term government securities and are issued by a country’s central bank, like the CBN, to raise money for the government while OMO bills are very similar to T-bills, but they are issued specifically to control money supply and liquidity in the economy.
Daily Sun gathered that the apex bank at the Nigerian Treasury Bills (NTB) auction conducted midweek, offered instruments worth N400 billion across three maturities — 91 days, 182 days, and 364 days.
However, investor appetite was significantly higher, with total subscriptions reaching N1.54 trillion, resulting in a bid-to-offer ratio of 3.9 times. In response to the robust demand, the CBN over-allotted a total of N714.38 billion, with the bulk of the allocation — N650.28 billion — channeled into the longer 364-day paper.
Stop rates declined across all tenors, reflecting the strong market interest. Similarly, at the OMO auction held on April 25, the CBN offered instruments worth N500 billion across two tenors — 298 days and 319 days.
